Tablets are nice devices many are now using across the world. I feel many more could be using them, but there are some reasons why a lot of people still haven't shelled out the dough yet. It's not that great hardware isn't available, it's because carriers aren't marketing them right.
Above you will see enemy #1, the carriers. Right now the price of tablets are at just about the same level of price as phones. The iPhone 4S costs $649.99 without contract, and the new iPad is $629. I use the iPad as an example because both have cellular radios in them and can be purchased at all the carriers above except T-Mobile. All of these same carriers are able to offer the iPhone 4S at $199.99 with a 2-year agreement. That's a $450 difference off the full retail value of the phone. Great for consumers and great for sales. So why don't we see this with tablets?
Verizon has been #1 when it comes to marketing and offering the biggest number of tablets, so I will use Verizon as an indicator to what is happening in the tablet market. Right now Verizon sells the Samsung Galaxy Tab 10.1 at $699.99 without contract, and $529.99 with 2-yr contract. That's a discount of only $170, compare to the $450 difference of a cell phone. Does that seem a little odd? Now I know quite a bit of that is because a phone has a higher monthly cost due to having to have a voice/text plan in addition to data, but come on now.
Last August something awesome happened to the tablet market when HP killed the TouchPad. HP slashed the price to just $99.99 from $400 and the market answered by gobbling all of them up within a few hours of announcement. Before the price drop only about 100,00 were rumored to have been sold with almost a million manufactured. So from this we know people are willing to buy tablets, but costs must be lowered. If given the opportunity to spend $600 on a tablet or $500 on a decent netbook, who would buy the tablet? iSheep.
So here is the answer to the tablet market. Carriers must cut the price. Wi-Fi models are selling better than LTE models for this reason. Recently Verizon started selling the original Galaxy Tab refurbished for $129.99 on a 2-yr contract. Even though I can't give official reports, I can tell you I have seen a lot more of those old tablets lying around the office than I see iPads.
Things look better for the future. LTE innovation is about to introduce VOIP (Voice Over Internet Protocol) which will make everything work on data connection only. Much like you use Vonage at home a similar thing will be happening on your cell phone. Carriers have an opportunity to bundle everything together into one cost for a data connection. Imagine paying $80 to get unlimited VOIP, 1,000 SMS, 5GB of data. Bundle that plan on either a phone or a tablet. For tablets just pair your bluetooth or use the speakerphone, or pair the phone in your pocket (work phone or inactive phone). This can happen and will give carriers the opportunity to drive down tablet costs more.
I want a $200 Nokia Windows 8 tablet next year, and i want Verizon to make it happen.
